January 19, 2012

Some interesting figures have emerged as to how much Microsoft charges
its OEM partners per Windows Phone license. This is Microsoft’s bread
and butter — they charge PC manufacturers on a tiered system for Windows
licenses — so it’s not surprise they are making quite a bit of dough
from their handset partners, too.TrustedReviews.com
has obtained information from a ZTE official who claims that the
company pays Microsoft between $23 and $31 per Windows Phone handset
license (£15-£20). It is unknown whether this takes into account
preexisting agreements for Android patents, or if that is a separate fee
(believed to cost between $5 and $15 per handset). It also believed
that Microsoft charges its high-volume partners, namely HTC and Samsung,
a lower fee correlated to how many handsets they ship.
The figure towers above previous estimates of license fees for
Windows Phone, which were pegged at less than $10 for top-tier OEMs,
with some analysts going as low as $3. Whether accurate or not (and
there is no reason to believe a ZTE official would risk damaging its
relationship with Microsoft as a result) the figure is a huge insight
into Microsoft’s strategy for Windows Phone. Manufacturers of Android
handsets, ZTE among them, have embraced the free and relatively
open-source Google model, but with high licensing fees Microsoft does
not need to sell as many handsets to make a profit from its mobile OS.
However, I’m sure they’d still like to sell more than they have been.
ZTE unveiled its first Windows Phone, the Tania, last night in England.
Source: ZDNet